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Debt and Development

Submitted by Looking Glass

Are we sinking under the burden of debt?

The limited possibility of substantial National Debt reduction (the total remains a secret) can be gleaned from the following: There is a direct correlation between public and private debt in a society whose mental set permits profuse consumption, “unencumbered” government spending and borrowing; moreso when the total Black Net Worth today borders on ancient history. Our total net worth is insufficient to finance government spending, new investment and job creation. Inevitably the national debt increases, and so too the sale of public and private assets.

Countries, like companies, have to compete in order to produce the most value at the least cost possible. Where the marginal cost of government is “non-competitive” loss of real and human capital obtains. The latter includes the brain drain and atrophy of the mind. Positive national development is unlikely to occur even if the debt burden is substantially alleviated. With domestic food production in decline and wages and prices out of sync, selling profitable assets and privatisation rather than generating new assets and wealth is unlikely to be positively dynamic.

Accommodating firms like Cost U-Less will hasten and enlarge employment and development problems. Use our natural resources land, sun and sea to facilitate development and people learn to live within their means. There is high unemployment, poverty and people living at the margin in every resource rich and developed country. Barbados is about the only country in the world where education is free up to the tertiary level. We need to introduce programs and courses related to development and our history.

Lying is an accursed vice, a sin worthy of the stake. So why do some of our politicians and their cronies continue to lie about the economic condition of Barbados; plying the people with false accounting while paving the way back to Black Servitude. It leaves one to wonder if the rules of engagement in politics are different from those in other spheres of life, some of which will likely be conducive to pathological exaggeration. With limited revenue generating resources and not much more left to sell, more borrowing will be needed just to service the debt which puts us further in the hole.

Already Blacks are being reduced from a ‘relatively reasonable’ life to a precarious condition of poverty. If the black man is to have a future beyond servitude it cannot be achieved by prolonging the present. And this cannot be blamed on imperialism, neo-colonialism, racism, or other clichés one may care to fabricate. Government(s) took liberties with the public purse; nig-nig sought to satisfy champagne taste with bread and fish coppers. Do I hear dissenting voices?

Thirty years of living on debt to support consumption behaviour has caught up with us. On the eve of a general election one would have hoped that the platform agenda of both parties would have this item high on the agenda. 74% of the public has identified in a recent Cadres poll matters of the economy to be of great concern but the parties are into the usual mud and corn beef politics. A people will always get the government they deserve.

Our cost of production in Barbados is too high, this is a fundamental of our economy which must be wrestled to the ground sooner rather than later.

How very sad that the author had to use this last sentence.
” Government(s) took liberties with the public purse; nig-nig sought to satisfy champagne taste with bread and fish coppers. Do I hear dissenting voices?

Yes!! FACTS were enough, the insult in the hyphenated word was unnecessary.

Efficiency is inherent in good management and is a maintenance issue. Managing the economy must respond to pressures, internal and external, and must generate responses which lead to sustainable positions. At the moment our level of accumulated debt is so high that rescheduling payment schedules is the only option in sight; along with selling off national assets of course.

On my first trip to Barbados I walked down the beach to the Hilton and ordered a hamburger, then watched my waiter go have a chat with someone at the bar, then someone at a table and so on.Every so often I would catch his eye a give the wheres lunch look and he would wave his hands and say relax slow down.After about an hour he shows up with my meal and I ask how he recognized me, I am so much older now.and we both had a laugh For days the anxioty was killing me everyone saying relax take it easy after the first week I finally did relax, all the pressure to get things done left and I laid back and had a great vacation.When I went home I had to get back up to speed, and if speed in my town is fast I cannot imagine how it is for someone from Newyork. All this to say we work like crazy in Canada and Usa, our Bajan friends miss life on the island where its relaxed and laid back but there is a penalty for being relaxed and laid back and that is income.

how about collecting all outstanding debt accumulated by private sector and placing a moratorium for further lending to them giving or financial hands out until debt is satisfied, these outstanding debts are also a big problem of government debt.

I suspect the gist of LG’s post is one of attitude rather than structural deficiences . If i’m correct then this conversation is long over due. how do i know; just take a look at all the vehicles that are plated ML and MP and tell me what are we finding… a country where public servants not withstanding affordability, engage the nation’s business in excess luxury in the height of a prolonged recession without the thought that not only are they sending the wrong message of consumption but more importantly segregating themselves physically and mentally from everyday world of ordinary Barbadians .( and these vehicles are tinted to the hilt) And these people are expected to understand the plight of suffering and implement decisons that can uplift ? If they have not realised this as yet, the optics are very poor . And if Bajans haven’t realised it as yet then the disconnect will continue.. As Bob Marley sang … “blast off in their spaceship and miles from reality, don’t care for you and don’t care for me… so much trouble in the world”

Great contribution from the Looking Glass…..,including the ‘nig-nig’ rib… Excellent and on target analysis of our situation and of its cause.
Quite simply, if you live beyond your means, you HAVE TO end up being owned by your financier……a slave of the very worse kind – self inflicted.

It is instructive that a people who so recently had the experience of being slaves ‘vi et amis’ can so meekly, willingly and stupidly allow themselves to be led again into bondage by a pack of thieving, low-minded lawyers/politicians through greed and vice.

nig-nig is probably one of the more complimentary terms that Bushie would choose to describe such people….

@ac
I agree that private sector debts to government have to be collected, but you can’t do as the Minister of Finance did, and talk of debts owed by the private sector generally, without being specific. His comments were in response to and ill-timed statement (in my opinion) from the Barbados Private Sector Association (BPSA) to the effect that government owes many companies large amounts in tax refunds. The chances are very remote, even impossible, that the companies that are owed money are the same as those that owe money. I know for a fact that, in many cases, when government agencies pursue debts, there is interference from either politicians or politically-linked attorneys to “lay off” the debtor company. Yet those companies who go about their legitimate business, earn foreign exchange, and generally pay their taxes, are being penalised because they are part of the same”private sector” as the debtor companies. Just one of the many reasons that Barbados remains uncompetitive. Refusing to pay VAT refunds is tantamount to a tax on exports.

peltdown as a taxpayer i don,t care how these debts which is budensome to govt and is part of govt high defecit is collected as long astheir is a consorted effort with an all out attempt on collecting. a lot of these loans have the backing of the govt and when the commitments have not been met by the loanees the govt have to pay them and that is not right cause in the long run the taxpayer ends up footing these bills at a very high cost accumulation balloned by late payments and higher interest.

@ izabajan | January 23, 2013 at 7:46 AM |
“.. just take a look at all the vehicles that are plated ML and MP and tell me what are we finding… a country where public servants not withstanding affordability, engage the nation’s business in excess luxury in the height of a prolonged recession without the thought that not only are they sending the wrong message of consumption but more importantly segregating themselves physically and mentally from everyday world of ordinary Barbadians..”

So true, just so true it’s unbelievable! This, Baje, encapsulates the whole of LG’s well written and incisive article and puts in sharp honest perspective the pièce de résistance:
“nig-nig sought to satisfy champagne taste with bread and fish coppers.”

Maybe if LG had limited his criticisms to the period 1994-2008 it would have gone well- in a factual sense- like sweet political honey down the broom’s gullet with sycophantic receptiveness unlike the “back to the cane field” outburst of “bitter” gall to the lazy nig-nig graduates still loitering in our Education system.

Barbados’ Golden Age is ended! The quicker we start preparing ourselves for a different way of earning a living and indeed changing our lifestyle based on overtly conspicuous unaffordable consumption the less harsh and sacrificial would be the road to survival.

Stop blaming some make-believe international recession being used by local politicians and their lackeys for electoral propaganda purposes. What kind of economic recession would last over 5 years? Must be a Depression of economic quicksand. This is a paradigm shift in economic and financial relationships the Western world must come to grip with. Harking back to halcyon days of pre-2008 economic orgies equivalent to the Roaring 20’s will not cut it this time around.

the issue here is about govt debt and development and the relevant point is on how it accumulated and how attiitudes are a contributing factor and i maintain the same attitude that persist in the public is also prevelant in the private sector with a mentality that govt is “suposed”

@BU’s position has always been that Barbados’ economy is public sector led. What private sector what. Government has to lead the way and stop being a puppet. Of course Baffy and Pacha will soon chime in that what we are seeing here is a derivative of the hybrid Westminster system of democracy we hold so dear.

Can you kindly enlighten that despotic political party parading as the BLP that they must pay attention to those persons within their midst who have pointed out the folly of their current parliamentary “boycott” (unless it is for food !).

Sir Louis says the PM is right to follow the Barbados Constitution on the calling of general elections.

Dean Harold Crichlow says the PM is right to follow the Barbados Constitution on the calling of general elections.

Mr. Caswell Franklyn (of UNITY fame) says the PM is right to follow the Barbados Constitution on the calling of general elections.

Professor Jeff Cumberbatch says the PM is right to follow the Barbados Constitution on the calling of general elections.

So therefore, the question remains :

WHAT IS IT OWEN ARTHUR AND THE BLP DO NOT WANT BARBADIANS TO FIND OUT BEFORE THE PENDING…….GENERAL ELECTIONS ?

@ Observing(…) | January 23, 2013 at 11:45 AM |
“he is not outside of the law by doing”

You are quite right to try to “straighten out” this precise point to “!”.

No one, either on this blog, on the political platform or in traditional media, has ever accused the man of “breaking the law or violating any provisions enshrined in the Constitution”.
What people from varying sectors are questioning is the beleaguered man’s puerile attitude and offhanded dismissal of the people’s feelings and breach of the mandate given by the people who elected them over 5 years ago (15th January 2008) to stay no longer than 5 years in managing the business of State without seek a renewal of its mandate and management contract.
We are questioning the man’s political integrity and ability to make timely judicious decisions. What justification does he have to prolong his stay without asking for a proper and timely renewal of contract of trust between his party and the electorate?

The BarbadosToday has a good editorial on this same abuse of the people’s trust and patience. What is the man trying to prove, that he really is Mr. lying Molasses?

breach of the mandate given by the people who elected them over 5 years ago (15th January 2008) to stay no longer than 5 years in managing the business of State without seek a renewal of its mandate and management contract.
______________________________________________

Your logic is flawed.

If he is not outside the law…then what mandate has PM Stuart breached ?

Any mandate given to a political party to govern is given …..within the law .

@ ! | January 23, 2013 at 12:18 PM |
“Any mandate given to a political party to govern is given ….within the law.”

So too is any ruling given by the Speaker of the House regarding the conduct of the people’s business.
Explain then why the DLP under David Thompson walked out of Parliament in Late 2008 approx. 9 months before the expiration of the mandate given under the law?

IT IS GOOD TO SEE THAT SOMEBODY ON THIS BLOG IS PREPARED TO THINK ABOUT THE ISSUE OF DEBT. SOMETIME AGO OUR FRIEND JUSTIN ROBINSON AND THE MAN FROM ST PHILIP USE TO TALK ABOUT DEBT – WHEN OSA WAS IN POWER. NOW THESE VOICES ARE STILLED. BUT DEBT, AND PARTICULARLY, THE NATIONAL DEBT OF BARBADOS IS UNREPAYABLE. WE SAY UNREPAYABLE. THIS MY FRIENDS IS THE WAY BACK TO SLAVERY OR AT LEAST CONTINUED UNITED STATES HEGEMONY IN THE CARIBBEAN. A LOT OF PEOPLE IN BARBADOS GOT A LOT OF TIME TO MIND OTHER PEOPLES’ BUSINESS. AND THIS IS NOT LIMITED TO THE ORDINARY FOLS IN THE STREETS BECAUSE THOSE ON HIGH OR LITTLE DIFFERENT. THESE PEOPLE ARE MORE INTERESTED IN YOU FOOP WHOM THAN PROVIDEING STRATEGIC OPTIONS FOR THE PEOPLE OF BARBADOS ESPECIALLY AT A TIME OF SEISMIC SHIFTS IN THE RULING SYSTEMS OF THE WORLD. DEBT IS DRIVING THE WORLD POWERS TO ENGAGE THEMSELVES IN ALL TYPES OF WARS EVERYWHERE. SOMETIMES ONE POWER CAN BE DETECTED ON SEVERAL SIDES OF A CONFLICT. A CONFLICK THAT MAY APPEAR TO THE UNINITIATED TO BE TRIBAL WAR OR CIVIL WAR. IT IS TIME THAT THE PEOPLE OF BARBADOS AND THE CARIBBEAN WAKE UP TO THE ETERNAL SEVITUDE THAT OUR PPOLITICAL LEADERS HAVE CONSPIRED WITH OUR ENEMIES TO PREPARE FOR US – DEBT SEVITUDE FOREVER!

Yes, it was the public relations gimmick that is and was christianity that was an integral part of the chattle slavery epoch. So christians are in a proper position to talk about slavery for they used their religion to destroy a large part of mankind.And these same fuckers have the temerity to show their ware in public. So any cunt hole whose answer to all the problems in the world is the same tired shit must be taking his own stuff. And no good drug pusher should use his own product.

@ Zoe | January 23, 2013 at 1:51 PM
“And SIN HAS NO COLOUR! It PERMEATES the ENTIRE HUMAN RACE!”

So why did your god curse Ham and his descendants and not those of his other two brothers?
The children of Israel are not cursed with SIN but blessed by Yahweh and chosen as your god’s special children as manifested in Jesus a full-blooded Jew being worshiped by people like you as His only begotten son.
The Japanese or Australian Aborigines must be having a good laugh at you guys. Or are they part of the descendants of Ham?

“Maintaining jobs in this economy has not been an easy accomplishment. It was done despite the fact the IMF and the BLP was recommending that expenditure be reduced by reducing the public sector wage bill. Give this government credit.”

If you want to enslave a people give them low mortgage rates or free cell phones or watches. But if you really want to enslave them promise them life after death. Today everybody is a slave to something.

Media is only a function of interests that supports them. For it can never exist in the way it does without support from the monied interests, sometime government – and they other priorities. BU, for example, will never be commercially viable for the basic reason that it does not serve corporate interests and there is an absence of a well developed community of interests where you are. A communities that support this kind of mud raking citizens’ jounalism in the way real capitalist like to think they should – grant funding.

Carson C. Cadogan | January 23, 2013 at 3:41 PM |
“Maintaining jobs in this economy has not been an easy accomplishment. It was done despite the fact the IMF and the BLP was recommending that expenditure be reduced by reducing the public sector wage bill. Give this government credit.”
James Paul

Neither you nor James Paul seem to understand the meaning of the words maintaining or economy.

@ Baf & David
We dont know how some people have the same answer to every question that arises. This has been going on too long.

Baf you asked about CBC. Well, it has always been the propaganda arm of government. When one can not see local television news in Barbados for 20 years or more and has missed nothing it must speak to a certain level of national medicantcy. On international news, CBC just parots the arch propagandist the BBC and CNN. You will never see an overseas report from RT, Press TV, Democracy Now, Progressive Radio. Al-Alam or Pars News Agency. You will never see biting documentaries. CBC is and has been totally useless, if you have a brain.

NOTE BOTH WORDS BEGIN WITH “D”. IT DOES NOT TAKE A ROCKET SCIENTIST TO DECIPHER THAT THERE CAN BE NO SOCIETY WITHOUT AN ECONOMY AND NO DEVELOPMENT WITHOUT DEBT. THE TWO GO HAND IN HAND TO ACCELERATE THE PRICE OF PROGRESS. DEBT DID NOT START YESTERDAY, IT STARTED SINCE 1961 WITH THE GIVING AWAY OF FREE THIS AND FREE THAT BY A COUNTRY WITH LITTLE RESOURCES AND NOTHING TO PRODUCE BUT YET HAVING TO FICTIOUSLY INFLATE REMUNERATION IN AN EFFORT TO ALLEVIATE THE EVER RAMPAGING COST OF LIVING. BUT WE LOVE TO HEAR THE FALSE CONCEIVED PRAISE OF ‘PUNCHING ABOVE OUR WEIGHT’.

On the question of debt, this real serious. The USA has a national debt, as measured by the accumulation of deficits plus interest, of about 16 trillion dollars. NOW if we were to add unfunded liabilities this number could be up to 120,000,000,000,000 (120 trillion). The accumulation of deficits represent about 110% of GDP. Numericaly, Barbados is in about the same position as the USA viz a viz percentage of national debt. Japan has be in depression for nearly 20 years and has a national debt of about 240% of GDP. We can talk about Iceland, the EU countries etc. What are we looking at when debt outstripes the value of goods and services produced in a year. Or in other words where liabilities exceed assets? Some in business and academia have suggested that a state can withstand this inversion of reality for an extended period and point to Japan as evidence. However, we contend that the high national saving rate in Japan acts as a bulwark against national economic bankruptcy. In the USA and Barbados the same cant be said. We say that this bankruptcy is one of the indicators of the collaspe of capitalism as an organising principle. Other indications of collaspe could include the mountain of derivatives, we estimate 700 QUADRILLION (15 zeros). This is even worst that than national debt of countries. Household debt is another big problem, still. Of course they are issues like global warming and so on that indicates our doom.

We would not go that far. However, it has been clear to most that the Barbados economy rests on thin ice.This is why we have a strategic interest in leading the WORLD with new thinking about these matters.

PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDSJanuary 24, 2013 at 6:07 PM#

As long no law is broken the PM can call election when he wants , Past practice is not law, Many more laws were and are being broken and We here at Plantation Deeds is not hearing the out cry.
All will be done by Mother’s Day?
Let us hear the same out cry for Violet Beckles